Uralkali seeks alternatives for coupon payments on 2024 Eurobonds

MOSCOW. April 15 (Interfax) - Russian potash giant Uralkali , which is due to make a coupon payment on April 22 on dollar-denominated Eurobonds maturing in 2024, is considering alternative options for making the payment given the uncertainty regarding the processing of payments made by Russian borrowers, the company said.

"In light of the significant uncertainty relating to the processing of cross-border payments, regulatory constraints and delays recently experienced by Russian companies attempting to make payments under their bonds and loans, Uralkali is exploring alternative options of making the payment of interest due on 22 April 2022 whilst not prejudicing the interests of the Noteholders," the company said in a statement.

Uralkali urged bondholders to contact the company as soon as possible in order to discuss and find an acceptable solution.

"The Company stresses that a consistent performance of obligations to creditors is among the Company's key priorities and that in current conditions Uralkali is taking all possible steps to ensure a steady servicing of its debt," Uralkali said.

Uralkali, whose co-owner Dmitry Mazepin is subject to EU and UK sanctions, said on March 24 that it was unable to process a payment on pre-export financing through agent Credit Agricole. The company said at the time that there were no grounds to refuse the payment to its lenders due to the fact that Mazepin had stopped being the controlling person of the company.

Mazepin, who was hit by sanctions at the beginning of March, handed control of the UralChem Group to his long-time associates, company chairman Dimitry Tatyanin and CEO Dmitry Konyaev. Mazepin retained a 48% stake in Uralchem Fundamentals LLC, which in turn controls 100% of shares in Uralkali.